Fleetmatics: More Room To Run?
Alpha Gen Capital
Alpha Gen Capital
FleetMatics Continues To Make All The Right Moves
Alpha Gen Capital
Alpha Gen Capital
Thu, Feb. 25, 10:25 AM
- Though FleetMatics (FLTX -11.7%) beat Q4 EPS estimates and posted roughly in-line revenue, the company is guiding for Q1 revenue of $78M-$80M and EPS of $0.33-$0.35, below a consensus of $80.2M and $0.39.
- Full-year guidance is healthier: Revenue of $342M-$346M (21% Y/Y growth at the midpoint) and EPS of $1.72-$1.80 vs. a consensus of $343.7M and $1.75.
- On the earnings call (transcript), CFO Stephen Lifshatz mentioned hiring activity will affect FleetMatics' Q1 bottom line. "[W]e tend to do quite a bit of hiring early in the year and have a set of expenses that go along with that and see the productivity gains on a quarter-by-quarter basis."
- Meanwhile, CEO Jim Travers suggested his company is willing to offer discounts to win some large deals. "We're the market share leader. As reported and disclosed in previous calls, we have seen some of our competitors get pretty aggressive trying to secure a business. And in some cases, we're going to walk from it. And others ... we're going to go after it." SA author Cauchy raised concerns about competitive pressures in November.
- Active vehicles under subscription rose by 54K Q/Q in Q4 to 709K. GAAP operating expenses rose 31% Y/Y to $45.6M - $24.7M was spent on sales/marketing, $14.9M on G&A, and only $6M on R&D. 2015 free cash flow totaled $45.2M, and FleetMatics ended the year with $177M in cash and $23M in debt.
- FleetMatics' Q4 results, earnings release
Dec. 11, 2015, 3:21 PM
- A long list of tech firms are off sharply as the Nasdaq and S&P respectively drop 2% and 2.2% ahead of an expected Fed rate hike.
- The casualty list includes threat-prevention hardware/software provider FireEye (FEYE -6.2%), machine data analytics software vendor Splunk (SPLK -7.1%), driver-assistance system vendor Mobileye (MBLY -6.3%), supercomputer makers Cray (CRAY -7.6%) and Silicon Graphics (SGI -7%), audio codec chipmaker Cirrus Logic (CRUS -5.3%), and local services marketplace Angie's List (ANGI -6.3%).
- Others include cloud HR/financials software provider Workday (WDAY -5.6%). enterprise social networking software firm Jive Software (JIVE -5.9%), cloud telematics software provider FleetMatics (FLTX -5.2%), mobile accessory maker Zagg (ZAGG -7.5%), network visibility/monitoring hardware provider Gigamon (GIMO -5.8%), smart grid networking hardware/software provider Silver Spring (SSNI -8.9%), and online travel deals provider Travelzoo (TZOO -6%).
Nov. 4, 2015, 4:00 PM
- In addition to beating Q3 estimates, Fleetmatics (NYSE:FLTX) has guided for Q4 revenue of $76.5M-$77.5M and EPS of $0.37-$0.40, favorable to a consensus of $76.2M and $0.37.
- The SaaS fleet management software vendor has also announced it's buying Italian peer Visirun for an undisclosed sum. Visirun's platform claims 3K customers and has 28K vehicles under subscription. "Italy was a natural next step in our European expansion plans and builds off of our recent entries into The Netherlands and France," says CEO Jim Travers. Fleetmatics notes Italy is Europe's third-biggest telematics market, and that an estimated ~5% of Italian commercial vehicles currently use a telematics solution.
- Shares have made new 52-week highs.
- Q3 results, PR
May 7, 2015, 3:36 PM
- Tech companies rallying after posting calendar Q1 reports include online textbook rental/learning services provider Chegg (CHGG +14.6%), salvage auction site Liquidity Services (LQDT +10.3%), optical component maker Emcore (EMKR +6.7%), and health site owner WebMD (WBMD +6.7%).
- Companies declining following earnings include cloud fleet management software vendor Fleetmatics (FLTX -6.8%), seismic hardware provider Ion Geophysical (IO -11.8%), and online stock photo marketplace Shutterstock (SSTK -4.7%).
- Chegg beat Q1 estimates on the back of an 89% Y/Y increase in digital revenue (now 39% of total revenue. Q2 revenue guidance of $61M-$65M and full-year guidance of $300M-$315M is respectively favorable to consensus estimates of $62.2M and $304.3M at the midpoints.
- Beaten-down Liquidity beat FQ2 estimates while reporting a 16.6% Y/Y drop in GMV to $189.4M. FQ3 guidance is for GMV of $175M-$200M and EPS of $0.05-$0.10 (below an $0.11 consensus).
- Emcore beat FQ2 estimates and is guiding for FQ3 broadband fiber division revenue of $19M-$21M, above an $18.5M consensus.
- WebMD beat Q1 estimates on the back of 21% Y/Y increases in monthly unique users (210M) and page views (4.25B). Q2 revenue guidance of $145M-$148M is below a $151.9M consensus, but full-year revenue guidance of $615M-$635M has been reiterated.
- Fleetmatics beat Q1 estimates, but also guided for Q2 revenue of $67.9M-$68.7M and EPS of $0.24-$0.26, below a consensus of $69.5M and $0.30. Full-year guidance is for revenue of $281M-$283M and EPS of $1.26-$1.30 vs. a consensus of $288.8M and $1.29.
- Ion, hit hard by declining oil exploration work, missed Q1 estimates while reporting 79%, 49%, and 12% Y/Y drops in Solutions, Systems, and Software revenue. The company expects "an increase in exploration spending over the back half of the year, albeit at lower than historical levels."
- Shutterstock beat Q1 estimates, but also forecast Q2 revenue of $104M-$106M (below a $106.1M consensus). 2015 revenue guidance of $436M-$444M is in-line with a $439.5M consensus.
- Previously covered: Alibaba, Qorvo, SunEdison, MeetMe, Priceline, Teradata, Activision, Gogo, Atmel, Varonis, Zynga
May 6, 2015, 5:40 PM
Apr. 9, 2015, 10:56 AM
- BofA/Merrill has downgraded cloud HR/payroll software vendor Paylocity (PCTY -5.9%) and cloud fleet management software vendor Fleetmatics (FLTX -3.2%) to Underperform, and cloud contact center software vendor Five9 (FIVN -4.7%) to Neutral. Rackspace (NYSE:RAX) and Citrix (NASDAQ:CTXS) have also been downgraded (to Neutral and Underperform, respectively), but are posting sub-1% declines.
- Shares of all 3 companies rallied in February in response to Q4 beats (I, II, III)
Mar. 13, 2015, 3:15 PM
- The Nasdaq is down 0.9%, and major tech decliners are outnumbering major gainers by a sound margin.
- Notable gainers include 3D printer maker ExOne (XONE +2.7%), OLED materials/IP provider Universal Display (OLED +3.9%), stock photo marketplace Shutterstock (SSTK +4%), flash storage array vendor Violin Memory (VMEM +8.2%), and Wi-Fi hardware vendor Aerohive (HIVE +4.6%).
- For the second day in a row, Chinese companies are well-represented among major decliners. The list includes online retailer Vipshop (VIPS -4.8%), microblogging platform Weibo (WB -4.2%), auto site Autohome (ATHM -4.3%), online real estate plays SouFun (SFUN -5.3%) and Leju (LEJU -5.9%), and mobile game publisher iDreamSky (DSKY -4.5%).
- Other major decliners include flash sales site Zulily (ZU -5.8%), server maker Super Micro (SMCI -3.7%), fleet management software vendor FleetMatics (FLTX -3.9%), and 4G baseband modem maker Sequans (SQNS -9.1%).
- Universal Display is adding to yesterday's big gains, and appears to be benefiting from early signs of strong Galaxy S6 demand. Zulily has reversed yesterday's gains. Weibo's losses come two days after the company posted a Q4 revenue beat and offered in-line guidance.
- Previously covered: IBM, Ebix, NXP/Freescale, Qiwi, eHealth, Pandora, InterCloud, ChipMOS, Demandware, Imperva, Rudolph, Globalstar, ChannelAdvisor
Feb. 24, 2015, 5:39 PM
Nov. 13, 2014, 3:34 PM
- BofA/Merrill's Nikolay Beliov has downgraded FleetMatics (NYSE:FLTX) to Neutral, albeit while maintaining his $40 target.
- Beliov expects revenue growth to fall to 25% in 2015 from 38% in 2012, and thinks market penetration is in the 20%-34% range, rather than the company's stated 10%-12%. He also suggests the departure of FleetMatics' sales chief raises execution questions.
Feb. 21, 2014, 12:45 PM
Feb. 21, 2014, 9:14 AM
Feb. 20, 2014, 7:01 PM
- Though it beat Q4 revenue estimates and posted in-line EPS, Fleetmatics (FLTX) is guiding for Q1 EPS of $0.14-$0.16 and 2014 EPS of $0.80-$0.85, below consensus estimates of $0.25 and $1.12.
- Top-line guidance is healthier - Q1 revenue of $51M-$52.5M vs. a $51.7M consensus, and 2014 revenue of $228M-$230M vs. a $227.9M consensus.
- Ramping sales/marketing investments appear to be a culprit for the EPS guidance. Sales/marketing spend rose 52% Y/Y in Q4, outpacing revenue growth of 40% and equaling 32% of revenue.
- Q4 results, PR
Nov. 6, 2013, 5:40 PM
Nov. 6, 2013, 5:13 PM
- Fleetmatics (FLTX) shares soar 9.4% AH after the company soundly beat Q3 expectations and guided to higher-than-expected Q4 revenue. The results may have put some criticism to bed, if at least temporarily. Shares were down 37% from Sept. highs before results were released due to a bear article by SA contributor Prescience Point.
- Q3 gross margin of 75.9% expanded by 2.4% from Q3 in 2012.
- Active vehicles at the end of Q3 were 417K, up 37.6% Y/Y. Quarterly net churn nearly halved to 1.1% from 2.1% in Q3 2012. Gross churn was 1.9%, compared to 2.2% in Q3 2012.
- Management guides for Q4 revenue of $48.6M-$49.2M (vs. consensus of $47.0M), EBITDA of $14M-$14.4M, and EPS of $0.21-$0.23 ($0.22).
- PR, Conference call at 5pm ET
Sep. 19, 2013, 12:32 PM
- Shares of FleetMatics (FLTX -6.5%) tumble after SA contributor Prescience Point makes the bear case on the fleet management solutions provider.
- The short-focused boutique claims FleetMatics is inflating financial metrics through "an aggressive cost capitalization strategy that results in a highly misleading reflection of its business model and economics." The issue may come to a boil, Prescience Point, claims as "vehicle churn rate is set to continue increasing in the back half of this year, resulting in the unwinding of financial statement benefits previously reaped." It sees a downside of 72%.
Jul. 1, 2013, 11:18 AM
Fleetmatics (FLTX -3.6%) drops after filling a registration statement for an 8M share follow-on offering. Sellers will include company officers including the CEO. (PR)| Jul. 1, 2013, 11:18 AM
FleetMatics Group Ltd. is a global provider of fleet management solutions for small and mid-sized businesses delivered as software-as-a-service SaaS. It offers Web-based and mobile application solutions, which provide fleet operators with visibility into vehicle location, fuel usage, speed and... More
Industry: Application Software
Country: United States
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